Abu Dhabi freezes all rent hikes: What it means for existing, new, and Indian expat tenants

What changes for tenants?

The move temporarily overrides the existing framework under Abu Dhabi law, which allows landlords and property management companies to increase rents by up to 5 per cent annually, provided tenants are notified at least two months before renewal.

ADREC clarified that the approved rental value in the previous contract will remain applicable and no increases can be imposed on either renewed or newly signed leases until further notice, according to Gulf News.

Abu Dhabi introduced its first official rental index in 2024 to improve transparency and provide benchmark rental values for tenants and landlords. The emirate also uses the Tawtheeq system, which records and attests all residential and commercial tenancy contracts, reported Khaleej Times.

Relief amid rising costs

The decision comes as Abu Dhabi’s property market continues to witness strong demand from residents and investors. Industry observers quoted by Gulf News said the freeze could provide greater financial certainty for households and businesses by stabilising one of the largest components of living and operating costs.

Analysts also noted that limiting rent increases could help ease inflationary pressures and reduce disputes between landlords and tenants over lease renewals.

For Indians living in Abu Dhabi, the rent freeze could offer significant financial relief, especially for families and small business owners. Indians form one of the largest expatriate communities in the UAE, and many tenants typically face annual rent increases when renewing leases.

Under the temporary freeze, Indian families renewing tenancy contracts will avoid yearly rent hikes, helping them manage household budgets more effectively amid rising living costs. The move could also benefit Indian entrepreneurs and business owners operating shops, offices or warehouses by keeping commercial rental expenses stable.

Part of broader support measures

The rent freeze follows a series of measures introduced by authorities since the outbreak of the US-Iran war on February 28. Earlier this year, Abu Dhabi’s Department of Culture and Tourism instructed hotels to accommodate stranded travellers affected by flight disruptions, with authorities covering the additional stay costs, the report by Khaleej Times noted.

Similar support measures were later adopted in Dubai for tourists impacted by cancellations and delays.

Officials have not specified how long the rent freeze will remain in effect, stating only that the policy will continue until further notice.